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Canada Methane and VOC Controls (SOR/2018-66)

Canada Methane and VOC Controls (SOR/2018-66): Canada’s federal methane regulations impose operating standards on upstream oil and gas facilities

Maílis Carrilho
Written by Maílis Carrilho
Updated on December 15th, 2025

Summary

Canada’s federal methane regulations are a core upstream emissions control regime under CEPA, but they operate alongside equivalency and non-application mechanisms that can shift compliance obligations to provincial systems, notably in BC and Alberta. The first compliance step is jurisdictional applicability, followed by facility-level control, monitoring, and documentation.

Details

Jurisdictions
  • Canada
Mandatory for

This law has a mandatory nature.

Criteria:

Covered upstream oil and gas facilities must comply with the binding requirements in SOR/2018-66, including the applicable operational standards, documentation, and reporting rules. laws-lois.justice.gc.ca+1

Exceptions:

British Columbia: The federal government has an equivalency agreement recognising BC’s regime as achieving equivalent outcomes, paired with an order process that can displace federal provisions in BC.

Alberta: An Order Declaring that the federal methane regulations do not apply in Alberta, except with respect to a federal work or undertaking.
These mechanisms mean companies must confirm whether the federal rules apply to their operations in a given province, or whether the provincial regime applies instead.

Deep dive

3 min read
Published Dec 15, 2025

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What’s Required

Responsible persons for regulated upstream oil and gas facilities must comply with operational and maintenance standards intended to reduce methane and certain VOC releases, including requirements that commonly cover:

  • Equipment-level controls and operating requirements (for example, conservation or destruction equipment where applicable).

  • Leak detection and repair programs, and prescribed inspection and repair activities.

  • Compressor and pneumatic equipment requirements and limitations on venting where specified.

  • Monitoring, recordkeeping, and reporting to demonstrate compliance.

Important Deadlines

  • In force since 2018

  • Requirements apply once a facility becomes subject to the regulation

  • Ongoing leak detection and repair inspections at prescribed intervals

  • Continuous recordkeeping and periodic reporting are required

  • 2025: Federal regulation no longer applies in Alberta, except for federal works and undertakings

  • In British Columbia, federal rules are displaced under an equivalency agreement, with provincial timelines applying

Current Status

  • SOR/2018-66 is in force as a consolidated federal regulation.

  • Provincial equivalency and non-application instruments have been updated over time, including a 2025 BC equivalency agreement and a 2025 Alberta non-application order.

  • The federal government has also consulted on amendments aimed at further methane reductions, indicating ongoing regulatory evolution.

Penalties for Non-Compliance

  • As CEPA-based requirements, non-compliance can result in enforcement actions, including prosecution.

  • CEPA offence provisions can involve significant fines and potential imprisonment depending on the offence, intent, and history.

  • Administrative monetary penalties may also be available for designated violations under the federal AMPs regime.

Examples of Known Violations

  • An upstream facility in a province where the federal rule applies must implement LDAR and equipment controls consistent with the regulation and maintain records that support inspection and enforcement review.

  • An operator in Alberta must confirm applicability in light of the 2025 non-application order and ensure compliance with Alberta’s equivalent provincial requirements where federal provisions are displaced.

  • A company operating across provinces may need two compliance playbooks: one for federal SOR/2018-66 jurisdictions and another for provinces operating under equivalency outcomes.

Resources

Maílis Carrilho
Added by:
Maílis Carrilho
Sustainability Research Analyst
Maílis Carrilho is a Sustainability Research Analyst (Intern) at Net Zero Compare, contributing research and analysis on climate tech, carbon policies, and sustainable solutions. She supports the team in developing fact-based content and insights to help companies and readers navigate the evolving sustainability landscape.
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Added on Dec 15, 2025 by Maílis Carrilho ·
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